‘A RETURN TO NORMALCY’
John-Paul Smolenski, CEO of MMP Capital shares his industry’s outlook
Newsday Article | May 19, 2021
John-Paul Smolenski, CEO of MMP Capital, said equipment financing for the health care sector is booming as demand for services is increasing including in the dental services area. His Farmingdale-based firm specializes in equipment financing, leasing, and unsecured capital financing, and says he is “seeing a return to normalcy.”
“We had a decent first quarter, slightly better than it was last year,” he says.
DEMAND IN HEALTH SECTOR FINANCING
Among bright spots, he says, is that equipment financing for the health care sector is booming as demand for services is increasing.
With PPP loans combined with manufacturers giving discounts of up to 60%, Smolenski says, there were investments in equipment, although about a third of his customers asked for temporary payment deferrals last year.
The bulk of loans are five-year, with interest rates between 3.5% to 15% APR based on credit, time in business, experience, and the size of the device, Smolenski says. An average loan is $125,000.
OPENING A NEW CUSTOMER BASE
In most cases, the equipment is key to sustaining operations, especially during the pandemic.
That was the case for Gary Pincus, owner of Printstation of NY, a New Hyde Park-based printing and signage company, who toward the end of 2019, snagged a five-year $155,000 loan through MMP Capital to buy a UV flatbed printer and cutter.
Since he also owns Send In The Clowns, a party planning and rental company, he thought he could use the equipment to also serve those customers.
Then the pandemic hit and his party business, his main revenue driver, shut down.
“We had this printer and I had to figure out how to make money with it”, he says.
So, he started making lawn signs for birthdays and other events —he made over 10,000 fan cutouts for the Mets that were placed in seats at Citi Field last season.
The equipment Pincus financed through MMP Capital helped him stay in business and “opened up new customer base,” he says.
To read the full article: A ‘feeling of optimism’ as businesses are again investing in equipment, software | Newsday
MMP Capital | Leading the way in equipment finance | www.mmpcapital.com